Consider a firm that sells its product in both the U.S. and the U.K. U.S. demand...

 

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Consider a firm that sells its product in both the U.S. and the U.K. U.S. demand is 12,000 units, and the U.S. production capacity is 15,000 units. Demand in the U.K. is 8,000 units, and the U.K. production capacity is 14,000 units. Production cost in the U.S. is $3.4, and production cost in the U.K. is 6. The current exchange rate is $1.24 = 1. The shipping cost is $1.3 per unit for any units shipped between the two countries. Sales prices equate to $105 in each country. a) How many should be made in each country? U.S. = U.K. = units. units. b) How much is the profit for each country? U.S. Profit = $ U.K. Profit = $ (round your response to the nearest dollar). (round your response to the nearest dollar). Consider a firm that sells its product in both the U.S. and the U.K. U.S. demand is 12,000 units, and the U.S. production capacity is 15,000 units. Demand in the U.K. is 8,000 units, and the U.K. production capacity is 14,000 units. Production cost in the U.S. is $3.4, and production cost in the U.K. is 6. The current exchange rate is $1.24 = 1. The shipping cost is $1.3 per unit for any units shipped between the two countries. Sales prices equate to $105 in each country. a) How many should be made in each country? U.S. = U.K. = units. units. b) How much is the profit for each country? U.S. Profit = $ U.K. Profit = $ (round your response to the nearest dollar). (round your response to the nearest dollar).

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a To determine how many units should be made in each country we need to compare the production co... View the full answer